City faces citizen’s suit over P250M loan with PVB

BY JC LOCSIN

BACOLOD CITY — Lawyer Rolando Villamor confirmed yesterday that he filed a citizen’s suit by way of a petition for injuction with prayer for preliminary injunction and/or temporary restraining order stopping the release of P250 million from the Philippine Veterans Bank (PVB) for the purpose of land acquisition intended for relocation site.

The 19 pages complaint prepared by Atty. Adelaida Rendon stated that the case is filed as a citizen’s suit by the plaintiff, who is a taxpayer of Bacolod City, arising out of his concern and apprehension that public funds may be wantonly wasted should the application for loan be enforced and the so-called “purchase of relocation site” which is illegal and wanting of any factual and legal basis and unless legal action is taken to prevent this impending illegal action, the same may result in the dissipation of public funds which will cause injury to the plaintiff and the public particularly the deprivation of availing basic services.

Villamor believed that as a consequence of this loan with the PVB, particularly on the 10-year loan payment with its principal plus interest–that are not fixed–and charges, as well as the continuing assignment of the city’s funds and the other disadvantageous provisions of this loan agreement and deed of assignment, the same shall adversely affect the Annual Budget and also the 20 percent Development Fund of the City of Bacolod in so far as the efficient and effective delivery of basic services and development programs to 61 barangays of the City as well as putting into fruition the development plans and program embodied in the City’s Annual Development Plan and Annual Investment Plan for the next 15 years.

Villamor also stated that if this loan will be allowed, the City will be left with no buffer considering that annual expenditures for the delivery of basic services historically accounts for 60% of the IRA. In his complaint, the plaintiff prayed that the court may recall immediately the Loan Agreement and Deed of Assignment entered into by the City of Bacolod through the Mayor with the PVB for reasons mentioned herein.

He also asked the court to refrain defendants from entering into any contract of Loan Agreement of the same nature with any banking institution and declare null and void SP Resolution No. 866 and 873 relative to this loan agreement.